A 501(c)(3) organization is a nonprofit organization such as a charity, church or school. Rather than to raise money as a profit, a 501(c)(3) organization raises money for a cause—typically one that benefits the community or the niche the organization serves. Forming a 501(c)(3) organization is similar to forming a business, but there are some additional steps such as filing for 501(c)(3) status and tax-exempt status that a nonprofit group qualifies for--a status that is not applied to for-profit businesses.

Name the 501(c)(3) organization. Choose a name for your nonprofit organization to reflect the mission or purpose for its existence. For example, a church may include the word church in the name, while a nonprofit organization that serves kids in the community may include "children" somewhere in the name. You should also search the secretary of state website for where you are registering the organization to see if there are existing organizations or businesses already using the name you want to register.

Register the 501(c)(3) business structure with the secretary of state. Contact the secretary of the state to register the organization as a corporation. The representative you speak to in the office can mail you or tell you where you can download the application you need to register the organization and incorporate it simultaneously.

Register the organization with the county. You also need to alert the county or city where you intend to operate the 501(c)(3) organization. Contact the business licensing office or the county clerk’s office to obtain the paperwork you need to complete and submit to the local government.

Apply for tax-exempt status with the IRS. One of the primary advantages of starting a 510(c)(3) organization is its tax-exempt status. Contact the IRS or visit the IRS website to obtain the Application for Recognition of Exemption. Complete and submit this information to the IRS to receive tax-exempt status for purposes of federal and state taxes for the organization.

Tip

Once a 501(c)(3) receives its tax exemption, this information becomes a public document. The document may reveal information about the organization such as the name, physical address, organization phone number and officers of the corporation with their contact information.

Warning

Applying for tax exemption is a complex and lengthy process. Do not expect to complete and receive the tax exemption status overnight. You are able to operate the 501(c)(3) organization while waiting to receive notice of whether or not the tax-exempt status has been granted by the IRS.